Google has confirmed a major algorithm update to Demand Gen campaigns, shifting the format from mid-funnel engagement to full-funnel performance, specifically for advertisers using purchase or lead-based conversion bidding.
The system now identifies people most likely to convert based on interest signals, then surfaces relevant products and creatives, even from brands the user hasn’t interacted with before.
This marks a pivot from contextual to interest-based targeting, similar to how Performance Max and AI Max for Search operate. Together, these campaign types now make up Google’s new “Power Pack” suite, which was introduced during Google Marketing Live 2025.
For advertisers, this means Demand Gen is no longer just for awareness. It’s now a core conversion tool, especially valuable for smaller brands looking to reach high-intent users.
This update was shared by Thomas Eccel.